The roughly 300 single family offices (SFOs) in Switzerland hold or manage an estimated total of around 785 billion francs. And yet they operate largely out of the public eye. 

At the same time, their structures are becoming more complex: regulatory requirements are increasing, assets are becoming more international, succession issues more demanding, and expectations regarding governance and risk management are rising.

Against this backdrop, the new code of conduct, which the Swiss Single Family Office Association (SFOA) is publishing for the first time this autumn, was the focus of a joint event in Zurich hosted by Union Bancaire Privée (UBP) and finews.

From left: Kurt Mossmann, Monica Espinosa and Carl Wieandt. (Image: courtesy)

Kurt Moosmann, president of the Swiss Single Family Office Association, Carl Wieandt, representing a single family office, and Monica Espinosa, Head of Family Office Solutions at UBP, took part in the panel discussion. The discussion was moderated by Dominik Buholzer, CEO and editor-in-chief of finews.

More Professionalism Without Giving up Independence

The code of conduct marks another step in the professionalisation of the Swiss family office landscape. At its core are questions of governance, responsibilities and the standards that professionally run single-family offices can use as a reference.

The discussion made it clear that single-family offices can hardly be captured by a one-size-fits-all approach. Their structures differ significantly – depending on the size of the wealth, the number of family members, the generational structure, the asset classes and the international orientation.

That is precisely where one of the key challenges lies: a code of conduct must provide guidance without imposing a too narrow framework on the very different needs of individual families.

Governance is Becoming a Key Issue

Accordingly, one focus of the discussion was governance. The larger and more complex a family fortune becomes, the more important clear decision-making processes, defined responsibilities and functioning control mechanisms become.

That applies not only to wealth management. Family offices are increasingly taking on tasks that go far beyond this – from tax and legal matters to succession planning and philanthropy, all the way to the management of direct equity stakes in companies.

This is also changing the organisation’s requirements profile. The traditional idea of a small, discreetly operated office that primarily manages the family’s liquid assets has long been insufficient for many large fortunes.

The Balance Between Family And Professional Structures

Another challenge lies in the relationship between the owner family and professional management. As control passes from one generation to the next, interests, investment objectives and risk perceptions need to be realigned.

Professional governance is intended to ensure that decisions are made transparently and responsibilities are clearly defined.

At the same time, the distinctive nature of a single family office remains: unlike a traditional financial service provider, it is ultimately accountable solely to one family or its wealth. This long-term perspective can be a major advantage, but it also requires clear rules for dealing with conflicts of interest and responsibilities.

Banks Must Redefine Their Role

The increasing professionalisation is also changing the relationship between family offices and banks. Many large single family offices now have substantial investment expertise of their own and engage with financial institutions on an equal footing.

For banks, it is therefore increasingly not enough to offer individual investment products. What is needed instead are specialised services, access to investment opportunities, financing solutions, custody services and expertise in complex cross-border matters.

International Interest in The Swiss Model

The initiative by the Swiss Single Family Office Association is also attracting interest beyond Switzerland. International financial centres are closely watching how common standards can be established for single family offices without restricting their entrepreneurial freedom or the very different structures of the families.

That is precisely what makes such a framework distinctive: it is not meant to create additional regulation, but to provide guidance on governance, responsibilities and professional standards. Given the growing importance of family offices, the question of such guardrails is increasingly also occupying other international financial centres.

The Swiss code of conduct could therefore have an impact beyond the domestic financial centre. The SFOA is positioning Switzerland in an international debate about how professionalism, discretion and independence can be combined in single family offices.